Alkermes' Revenue Soars, Projects an Exciting Year Ahead

Alkermes (NASDAQ: ALKS),a drug developer that specializes in extended-release products and diseases of the central nervous system,released its fourth-quarter and full-year earnings results before the start of trading on February 15th. Here's a look at the company's results and details on management's expectation for the year ahead.

What management had to say

"We have built Alkermes to thrive in an increasingly challenging biopharmaceutical industry," said CEO Richard Pops.

Pops said his confidence stems from the strong growth prospects for both Vivitrol and Aristada, as well as from the company's burgeoning late-stage pipeline:

Management wasparticularly excited about the near-term prospects for Aristada. The company expects to win FDA approval for a new two-month dosing option of the drug by mid-year. He believes this will help the drug stand out in the highly competitive antipsychotic market.

Pops also commented further on the planned activities in 2017 related to Alkermes' pipeline:

Looking forward

CFOJames Frates told investors that the company expects to grow its top line by 20% in 2017, driven primarily by volume growth in both Vivitrola and Aristada. However, he also said the company is planning on making big investments in its commercial infrastructure to support the expected growth in Aristada and in anticipation of a 2018 launch of ALKS 5461.

Here's a look at management's guidance for 2017 compared to its results in 2016.

Data source: Alkermes.

The midpoints of this forecast fell a bit short of what Wall Street was expecting.

Regardless, Alkermes investors have plenty to look forward to in 2017. Vivitrol and Aristada look poised for significant growth, Phase 3 data readouts are expected on four separate pipeline products, and two New Drug Application submissions are planned. That positions the company well to deliver on its long-term target of producing more than $2 billion in annual revenue in the 2020's.

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